Insurance is an important part of our lives.
We have listed some important auto insurance FAQS
in a Question and Answer format to help you answer
some of the most common questions. Please feel free
to call us with any questions that you may have
regarding SR22 or DUI insurance filings in California.
These questions and
answers come from the: INSURANCE INFORMATION
INSTITUTE - www.iii.org Many more Questions and Answers are available
at this fine web site.
What is Auto Insurance
Auto insurance protects you against financial
loss if you have an accident. It is a contract between
you and the insurance company. You agree to pay
the premium and the insurance company agrees to
pay your losses as defined in your policy.
Auto insurance provides property, liability and
medical coverage:
Property coverage pays for damage to or theft
of your car.
Liability coverage pays for your legal responsibility
to others for bodily injury or property damage.
Medical coverage pays for the cost of treating
injuries, rehabilitation and sometimes lost
wages and funeral expenses.
An auto insurance policy is comprised of six
different kinds of coverage. Most states require
you to buy some, but not all, of these coverage's.
If you're financing a car, your lender may also
have requirements.
Most auto policies are for six months to a year.
Your insurance company should notify you by mail
when it’s time to renew the policy and to
pay your premium.
What is Home Owners
Insurance
Homeowners insurance provides financial protection
against disasters. A standard policy insures the
home itself and the things you keep in it.
Homeowners insurance is a package policy. This
means that it covers both damage to your property
and your liability or legal responsibility for any
injuries and property damage you or members of your
family cause to other people. This includes damage
caused by household pets.
Damage caused by most disasters is covered but
there are exceptions. The most significant are damage
caused by floods, earthquakes and poor maintenance.
You must buy two separate policies for flood and
earthquake coverage. Maintenance-related problems
are the homeowners' responsibility.
What kind of health insurances are
there?
There are essentially two kinds of heath insurance
-- Fee-for-Service and Managed Care. Although these
plans differ, they both cover an array of medical,
surgical and hospital expenses. Most cover prescription
drugs and some also offer dental coverage.
Fee-for-Service -
These plans generally assume that the medical professional
will be paid a fee for each service provided to
the patient. Patients are seen by a doctor of their
choice and the claim is filed by either the medical
provider or the patient.
Managed Care - More than half
of all Americans have some kind of managed-care
plan. Various plans work differently and can include:
health maintenance organizations (HM0s), preferred
provider organizations (PPOs) and point-of-service
(POS) plans. These plans provide comprehensive health
services to their members and offer financial incentives
to patients who use the providers in the plan.
